As an experienced analyst, I have closely monitored the price movements of XRP and have identified some critical technical indicators that suggest potential downturns in the mid-term. The daily chart shows that XRP faced intense selling pressure, causing a significant decline below the multi-month ascending trendline. However, buyers intervened at the $0.45 support level, leading to a bullish rebound towards the breached trendline at $0.56.
XRP’s price has dipped below its long-term uptrend, causing some uncertainty in the market as the cryptocurrency shows signs of weak activity and waning momentum. Nevertheless, it has hit a crucial resistance point that could be an indicator for another price drop in the medium term.
Ripple Price Analysis: Technicals
By Shayan
The Daily Chart
After closely analyzing the day-to-day price chart, it’s clear that XRP experienced increased selling forces, leading to a substantial drop below its long-term uptrend line.
Despite hitting a threshold at $0.45, buyers stepped in and caused an upturn in price, heading back towards the earlier broken trendline at $0.56. This could possibly signify the end of a correction.
The current market behavior of Ripple’s price indicates ambiguity, and it seems difficult to predict which way the trend will go next. It’s possible that Ripple may continue to trade between its support level of $0.45 and resistance level of $0.59 for an extended period.
Based on current trends, it appears that XRP will continue to trade within this price range for the time being before potentially breaking out.
The 4-Hour Chart
Taking a closer look at the 4-hour chart, we notice that the price bounced back after hitting support at around $0.49. Subsequently, it underwent a bullish correction and approached a notable resistance area defined by the price highs between $0.5310 (0.5 Fibonacci level) and $0.5574 (0.618 Fibonacci level).
As an analyst, I’ve observed that XRP exhibited an ascending wedge pattern during the latest price swings, a common technical indicator implying a possible bearish reversal if the lower boundary is broken. At present, there’s considerable selling pressure around the 0.5 ($0.5310) and 0.618 ($0.5574) Fibonacci levels, which could be an ominous sign of impending downward price action.
Despite the cryptocurrency staying within the confines of the wedge pattern, a significant drop beneath its lower limit could trigger a prolonged bearish trend. In the near future, this might push the price down to around $0.48.
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2024-05-06 15:34